Post on 24-Sep-2020
Access to Banking
Ian Goodliffe
Who are CACI?Working across the spectrum of business sectors, brands and languages to help global brands optimise sales and marketing performance
Publicly traded onNYSE
Over 300 clients,many international
An Econsultancy Top 15Digital Agency
Turnover in excess of$3.8 billion
800 Staffin the UK
Data & insight at the heart of everything we do
CACI Inc. Founded in 196250+ years old
EMEA headquarters inLondon
Mixed delivery models to suit client requirements
The way we bank is changing
Total current account interactions
Total current account interactions
Total customer interactions
More ways to bank than ever before
TECHNOLOGY/BEHAVIOUR
Digital banking is becoming
increasingly popular, both on mobiles,
tablets and desktop computers. Access
is driven by both by internet availability
and willingness to adopt new
technology
COMMUNICATION
Communicating with your bank,
now often 24/7, is easier than ever
before – including through
telephone banking, SMS, email,
online chats, and using social
media such as Facebook or Twitter
PHYSICAL ACCESS
Bank branches are still pivotal for
customers but there are a number
of other ways to bank now –
including through the Post Office,
ATMs, mobile bank branches, and
cash back facilities
As consumer behaviour changes and becomes more digital, banks must still ensure that no-one gets left behind.For example, the average person aged 80+ is more reliant on branches than other demographics:
• They visit a bank branch or post office 14.8 times a year, compared to 8.5 visits for the average adult
• They use ATMs 63.8 times a year, compared to 60 visits for the average adult Source: CACI, GfK, Kantar
• Over 600,000 are registered for online banking with the main UK high street banks Source: BBA
No-one left behind
Consolidation more than closure
• In the last five years 1,921 bank branches (16.2%) have been closed. But:– 93% of the areas that were served in 2010 by a bank branch still have one. That is because
60% of all closures have taken place in towns already served by a branch from the same bank.
Additionally:• 212 new bank branches have opened in the last five years by banks such as Metro Bank,
Handelsbanken, and Santander.• 2,274 bank branches were refurbished between 2013-2014, which is nearly one in four UK bank
branches.• Banks have introduced alternative ways to bank, such as mobile bank branches visiting around
600 locations, and banking services delivered through over 11,500 Post Office branches throughout the UK.
The average bank branch is 1.4 miles away
• On average, people are 1.4 miles away from a bank branch. • In rural areas people on average need to travel 3.4 miles whereas in urban areas people
normally have to travel 1 mile.• On average that means most people can drive to a bank branch within 4.4 minutes.• However, now that all the major banks have signed deals with the Post Office, on average
people live 2.1 minutes away from somewhere where they can carry out basic banking services, face to face.
*assumes travel by car, off-peak travel times
Convenience doesn’t always mean closest
• Customers rarely choose to use their nearest branch, just like they rarely choose their nearest supermarket or retail destination
• Preference is often linked to brand, but can also be influenced by other factors such as accessibility, size/range of offer, and proximity to other amenities
*assumes travel by car, off-peak travel times
Bank branches used less frequently
On average people go to their preferred retail destination 60% more often than their preferred bank branch – and will travel over 60% further to get there *assumes travel by car, off-peak travel times
More choice for bank customers• Bank customers are able to use
more than just bank branches to access basic services.
• For example, customers can use ATMs and Post Offices for services such as taking out cash and checking their balances.
*assumes travel by car, off-peak travel times
Banking services closer than the local pub
• If taken together (bank branches, ATMs and Post Office branches) these banking services are on average just 1.4 minutes travel away – closer than the local pub.
*assumes travel by car, off-peak travel times
99.9% of adults live within 20 minutes drive time of a bank branch or post office
Full-range access within 20 minutes of a branch or post office and reasonable internet
Digital access further than 20 minutes from a bank branch or post office but reasonable internet speed
Physical access within 20 minutes of a branch or post office but poor internet speed
Limited access further than 20 minutes from a bank branch or post office and poor internet speed
98.9%
0.001%
1.11%
0.002%
Internet
•Of the 49.4 million adults living within Great Britain, 1.1% have poor internet access*
•There are pockets of poor digital access all over Great Britain, and not just in rural areas
•In these areas, download speeds are 15 times slower (1.4Mbit/s) than the national average (20Mbit/s)
•This equates to 530,000 adults with limited internet speed, of which 330,000 say they would be willing to bank online
•Superfast broadband is available to just 3% of the population, but uptake is low
Mobile•3G coverage (defined as >3 providers) fills in some of the gaps in less remote areas•This provides mobile internet access to 470,000 of the 530,000 people (88%)•However large parts of Wales and Scotland, and small pockets of England, still have poor digital access (63,000 adults in total)
Improving Digital Access
*2Mbit/s is deemed an acceptable speed for
day-to-day online activity
Providing Physical Access for the ElderlyThere are 3.1 million people aged 80+ in Great Britain – 6% of the entire adult population
Of the 3.1 million people aged 80+ :•2.8 million live within 0.5 miles of an existing branch or post office
•A further 200,000 live within 0.5 miles of a free ATM
•A further 2,000 live within 0.5 miles of a mobile bank route
90%96%97%of people aged 80+ live within 0.5 miles of a branch,post office, ATM or mobile banking van
Conclusions
99.9% of adults can access basic
face to face banking services within
20 minutes, but the industry is
keenly aware that some customers
do not want or cannot use
technology to bank.
Firms should continue to develop
ways to help these customers
through initiatives like improving
services through the Post Office,
mobile bank branches, telephone
banking, and free-to-use ATMs.
A suitable digital infrastructure is
vital for customers to be able to
bank digitally.
The Government should prioritise
the roll out of superfast broadband,
particularly in geographic areas
where it would support access to
banking and financial inclusion.
3G and 4G coverage should also
be prioritised as a means of
supporting digital financial
inclusion.
The industry, consumer groups and
Government should support
customers capability to bank
digitally.
In particular, people who are less
likely to use digital banking (such
as the elderly), should be
supported to help them feel
confident in taking advantage of
new ways to bank.
Support Vulnerable Customers
Improve Digital Infrastructure
Support Digital Capability